Mining still dragging on Caterpillar

Caterpillar Inc. today reported first quarter net income of $933 million, or $1.44 per share, up from $880 million, or $1.31 per share, in the first quarter of 2013.

Revenue was $13.2 billion, flat from $13.2 billion in the first quarter of 2013.

The Peoria, Ill.-based company’s world mining division is based in Oak Creek and it operates a production plant in South Milwaukee.

The Resource Industries segment saw a sales decline of 37 percent because of weaker mining equipment demand.

Mining equipment orders continue to lag, and the Resource Industries division will likely have poor sales for the year, but the company remains optimistic about long-term mining prospects.

“Given the business and economic uncertainties around the world and continuing decline in our mining sales, I am pleased with our performance in the first quarter. We understand we don’t control the economy and have instead focused on what we can improve. We’re lowering costs, improving cash flow and driving value for our customers through the continued deployment of our lean manufacturing initiatives. We see the benefits of these actions in our first-quarter results and in improving market position for many of our products,” said Caterpillar chairman and chief executive officer Doug Oberhelman.

“This was a quarter that clearly highlighted the diversity of Caterpillar’s business across industries and regions of the world, and how that diversity continues to help us through the downturn in mining. Both Energy & Transportation and Construction Industries had good results in the first quarter and performed at levels better than we anticipated.”

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